This course lasts approximately 30 minutes, free and in video it is accompanied by magnificent PowerPoint graphics.
It is easy to understand and suitable for beginners. I often present this course during my training courses for people who participate in business creation projects.
It explains the main details that an invoice must contain. Mandatory and optional information, VAT calculation, trade discounts, cash discounts, different payment methods, advance payments and payment schedules.
The presentation ends with a simple invoice template that can be easily copied and used to quickly create new invoices, saving time to focus on your core business.
The training is aimed primarily at business owners, but is also suitable for people who are unfamiliar with invoicing.
Thanks to this training, many problems can be avoided, in particular losses linked to invoices that do not comply with French regulations.
If you don't know anything about invoicing, you can make mistakes and lose money. The objective of this training is of course to help you organize yourself in accordance with the regulations in force.
What is an invoice?
An invoice is a document that attests to a commercial transaction and has an important legal meaning. In addition, it is an accounting document and serves as the basis for VAT requests (income and deductions).
Business to business: an invoice must be issued.
If the transaction takes place between two companies, the invoice becomes mandatory. It is issued in two copies.
In the case of a contract for the sale of goods, the invoice must be submitted upon delivery of the goods and for the provision of services upon completion of the work to be carried out. It must be systematically claimed by the buyer if it is not provided.
Characteristics of invoices issued from business to individual
For sales to individuals, an invoice is only required if:
— the client requests one.
— that the sale took place by correspondence.
— for deliveries within the European Economic Area not subject to VAT.
In other cases, the buyer is usually given a ticket or receipt.
In the specific case of online sales, there are very specific rules regarding the information that must appear on the invoice. In particular, the withdrawal period and the applicable conditions as well as the legal and contractual guarantees that apply to the sale must be clearly defined.
A note must be provided to any individual for whom a service has been provided:
— If the price is higher than 25 euros (VAT included).
- At his request.
— Or for specific building work.
This note must be written in two copies, one for the client and one for you. Certain information constitutes mandatory information:
— The date of the note.
— Company name and address.
— Name of the customer, unless formally refused by him
— Date and place of the service.
— Detailed information on the quantity and cost of each service.
— The total amount of the payment.
Special billing requirements apply to certain types of businesses.
These include hotels, hostels, furnished houses, restaurants, household equipment, garages, movers, driving lessons offered by driving schools, etc. Learn about the rules applicable to your type of activity.
All structures that are required to remit VAT and that use a cash register system or software as part of their activities. That is to say, a system that allows recording the payment of sales or services in an extra-accounting way. Must have a special certificate of conformity provided by the software publisher or by an approved body. Failure to comply with this obligation results in a fine of 7 euros for each non-compliant software. The fine will be accompanied by an obligation to comply within 500 days.
Mandatory information on the invoice
To be valid, invoices must contain certain mandatory information, under penalty of a fine. Must be indicated:
— The Invoice number (a unique number based on a continuous time series for each page if the invoice has several pages).
— The Date of drafting the invoice.
— Name of the seller and the buyer (corporate name and SIREN identification number, legal form and address).
— Billing address.
— Serial number of the purchase order if it exists.
— VAT identification number of the seller or supplier or of the tax representative of the company if the company is not an EU company, of the buyer when it is a professional customer (if the amount is < or = 150 euros).
— Date of the sale of the goods or services.
— Complete description and quantity of the goods or services sold.
— The unit price of the goods or services supplied, the total value of the goods excluding VAT broken down according to the relevant tax rate, the total amount of VAT to be paid or, where applicable, a reference to the provisions of French tax legislation providing for exemption from VAT. For example, for microenterprises “VAT exemption, Art. 293B of the CGI”.
— All rebates received for sales or services directly related to the transaction in question.
— Payment due date and discount conditions applicable if the payment due date is earlier than the applicable general conditions, late payment penalty and amount of the lump sum compensation applicable for non-payment on the due date of the payment indicated on the invoice.
In addition, depending on your situation, certain additional information required:
— From May 15, 2022, the words "INDIVIDUAL BUSINESS" or the acronym "EI" must precede or follow the professional name and the name of the manager.
— For craftsmen working in the building industry who are required to take out ten-year professional insurance. The contact details of the insurer, the guarantor and the number of the insurance policy. As well as the geographic scope of the set.
— Membership of an approved management center or an approved association which therefore accepts payment by cheque.
— The status of agent manager or manager-tenant.
— franchise status
— If you are beneficiaries of a Business project support contract, indicate the name, address, identification number and duration of the contract concerned.
Companies that do not comply with this obligation risk:
— A fine of 15 euros for each inaccuracy. The maximum fine is 1/4 of the invoice value for each invoice.
— The administrative fine is 75 euros for natural persons and 000 euros for legal persons. For unissued, invalid or fictitious invoices, these fines may be doubled.
If an invoice is not issued, the amount of the fine is 50% of the value of the transaction. If the transaction is recorded, this amount is reduced to 5%.
The finance law for 2022 provides for a fine of up to €375 for each tax year from January 000, or up to €1 if the transaction is registered.
The proforma invoice
A pro forma invoice is a document without book value, valid at the time of the commercial offer and generally issued at the request of the buyer. Only the final invoice can be used as proof of sale.
According to the law, the amount of invoices between professionals is due 30 days after receipt of the goods or services. The parties can agree on a longer period, up to 60 days from the date of the invoice (or 45 days from the end of the month).
Invoice retention period.
Invoices must be kept given their status as an accounting document for 10 years.
This document can be preserved in paper or electronic format. Since March 30, 2017, companies can keep paper invoices and other supporting documents on computer media if they ensure that the copies are identical (Tax Procedure Code, article A102 B-2).
Electronic transmission of invoices
Regardless of its size, all companies are required to electronically transmit invoices in connection with public procurement (decree number 2016-1478 of November 2, 2016).
The obligation to use electronic invoices and to transmit information to the tax authorities (e-declaration) has been gradually extended since the entry into force of the decree in 2020.
Invoicing of credit notes
A credit note is an amount owed by a supplier or seller to a buyer:
— the credit note is created when an event occurs after the invoice has been issued (for example, the return of the goods).
— Or following an error in an invoice, such as the frequent case of overpayment.
— The granting of a discount or a refund (for example, to make a gesture towards a dissatisfied customer).
— Or when the customer receives a discount for paying on time.
In this case, the supplier must issue said credit note invoices in as many copies as necessary. Invoices must indicate:
— The number of the original invoice.
- the mention the reference TO HAVE
— The amount of the discount excluding VAT granted to the customer
— The amount of VAT.
